HPL's FY2016 profit rises 26.7% on land sale gains

GAINS from land sales lifted Hotel Properties Ltd's (HPL) full-year net profit by 26.7 per cent despite lower revenue from hotels and resorts.

For the 12 months ended Dec 31, 2016, the hospitality group's net profit was S$103.5 million, or 18.13 Singapore cents per share. The company has declared a per-share dividend payout of eight Singapore cents, comprising a four Singapore cent final dividend and a four Singapore cent special dividend.

Revenue slipped 0.3 per cent to S$577.6 million amid softer demand and ongoing refurbishment works at HPL's hotels and resorts, especially those in the Maldives.

Other operating income, however, almost tripled to S$62 million from S$22.3 million due to gains from selling two plots of land in Bangkok.

HPL expects uncertainties in the global economic and political environment to present challenges. Its Holland Park Villas and Burlington Gate joint-venture developments in London are expected to be completed later in 2017.